MARKETING MANAGEMENT
12th edition
15 Designing and Managing Value Networks and Channels
15-2
Chapter Questions
What is a marketing channel system and
value network?
What work do marketing channels perform?
How should channels be designed?
What decisions do companies face in
managing their channels?
How should companies integrate channels
and manage channel conflict?
15-3
Marketing Channels
Sets of interdependent organizations involved in the process of making a
15-4
Channels and
Marketing Decisions
Push Strategy
15-5
Categories of Buyers
Habitual shoppers
High value deal seekers
Variety-loving shoppers
15-6
Buyer Expectations for Channel Integration
Ability to order a product online and pick it up at a convenient retail location
Ability to return an online-ordered product to a nearby store
15-7
Should the 4 P’s be replaced?
Solutions
Information
Value
15-8
Channel Member Functions
Gather information
Develop and disseminate persuasive
communications
Reach agreements on price and terms
Acquire funds to finance inventories
Assume risks
Provide for storage
Provide for buyers’ payment of their bills
15-9
Designing a Marketing Channel System
Analyze customer needs
Establish channel objectives
Identify major channel alternatives
15-10
Channel Service Outputs
Lot size
Waiting/delivery time
Spatial convenience
Product variety
15-11
Identifying Channel Alternatives
Types of intermediaries
Number of intermediaries
15-12
Number of Intermediaries
Exclusive
Selective
15-13
Channel-Management Decisions
Selecting channel members
Training channel members
Motivating channel members
Evaluating channel members
15-14
Channel Power
Coercive
Reward
Legitimate
Expert
15-15
Channel Integration and Systems
Vertical marketing systems
Corporate VMS
Administered VMS
Contractual VMS
Horizontal marketing systems
15-16
Managing Channel Conflict
Adoption of superordinate goals
Cooptation
Diplomacy
Mediation
15-17
e-Commerce Marketing Practices
Pure-click
Brick-and-click
